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HomeMy WebLinkAbout005 26307 2026 UDC Housekeeping - Legacy STR - DRAFT ORDINANCE ______ AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA DECLARING CERTAIN TYPE 2 SHORT-TERM RENTAL USES TO BE LAWFUL NON-CONFORMING USES AND RECOGNIZING NOTHING IN THIS ORDINANCE SUPERSEDES SECTION 8 OF ORDINANCE 1974 OR SECTION 7 OF ORDINANCE 2149. WHEREAS, the City of Bozeman (the “City”) has adopted land development and use standards to protect public health, safety and welfare and otherwise execute the purposes of Title 76, Chapter 25, Montana Code Annotated, the Montana Land Use Planning Act; and WHEREAS, pursuant to the Bozeman City Chater, in addition to authority to regulate short term rentals (STRs) conferred upon the City by the State of Montana, the City hereby relies upon its self-government powers; and WHEREAS, the City has adopted regulations for STRs pursuant to Ordinance 1974 (effective December 1, 2017) Ordinance 2131 (effective August 11, 2023), and Ordinance 2149 (effective December 13, 2023); and WHEREAS, on December 16, 2025, the City Commission adopted Ordinance 2025-12- 2151, known as the Unified Development Code Update (UDCU), which, among other actions, consolidated the R1 and R2 zoning districts into a new zoning designation of RA; and WHEREAS, prior to the UDCU, Type 2 Short Term Rentals (STR) were not authorized as a use in the R1 district but were an authorized use in the R2 district and upon adoption of Ordinance 2025-12-2151, Type 2 STRs were not included as lawful uses in the RA zoning district; and WHEREAS, the City Commission desires to allow Type 2 STRs uses lawfully existing prior to the effective date of Ordinance 2025-12-2151 (February 1, 2026), or STR uses for which an applicant has submitted all required application materials prior to the effective date of the updated zoning regulations on February 1, 2026 or the effective date of this ordinance, to continue to operate as long as all other requirements of the Bozeman Municipal Code (BMC) are met and the STR continues to obtain an annual operating permit pursuant to Chpt. 38, BMC; and WHEREAS, the Commission desires to continue to recognize as lawful the STRs authorized pursuant to Section 8 of Ordinance 1974 and Section 7 of Ordinance 2149 as long as a host continues to comply with all requirements of said Ordinances and in doing so the Commission determines this Ordinance does not affect the lawful non-conforming status of any existing STR authorized pursuant to said ordinances; and WHEREAS, pursuant to 38.320.060.B.8.j, BMC, all STRs in the City, even those authorized pursuant to Section 1 of this Ordinance, must annually renew their permit to operate; as such, the Commission determines failure of a host to apply for renewal prior to the expiration date of the annual permit shall result in a STR recognized as lawful non-conforming by the Ordinance longer being considered a lawful non-conforming use; and WHEREAS, after proper notice, the Community Development Board in their capacity as Planning Commission required by 76-25-104, MCA held a public hearing on ___________, 2026, to receive and review all written and oral testimony on the proposed amendments to Chapter 38, BMC; and WHEREAS, after considering all matters the Community Development Board recommended to the Bozeman City Commission this Ordinance be approved; and WHEREAS, after proper notice, the City Commission held a public hearing on ______________, 2026, to receive and review all written and oral testimony on this Ordinance; and WHEREAS, the City Commission at its public hearing on __________ ,2026, considered all relevant materials submitted by the public, the recommendation of the Community Development Board, and the proposed Ordinance; and WHEREAS, the City Commission has reviewed and considered the applicable criteria for adoption of land use regulations established in Montana Code Annotated 76-25-304, the Montana Land Use Planning Act and found this Ordinance is in compliance with the criteria. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 A Type 2 STR use with an active permit operating lawfully prior to February 1, 2026 and located in the RA zoning district is eligible to receive an annual permit after February 1, 2026 to operate as a “Legacy Type 2 RA STR”. To qualify a short term rental as a Legacy Type 2 RA STR, a host must comply with the following:. A. Prior to the expiration of a current Type 2 permit and on an annual basis thereafter, a host must apply to renew the annual permit, pay all applicable application fees, and be fully in compliance with all other requirements of 38.260.060.B.1-3 and 38.260.060.5-9, BMC, and any subsequent amendments to Chapter 38, BMC. B. To continue to remain eligible to qualify for a Legacy Type 2 permit for every subsequent year, a short-term rental permit must not expire. If in any permit year the host of a Legacy Type 2 RA STR rental fails to renew the annual permit prior to the permit’s expiration, then, upon the expiration of the permit, the property is no longer eligible to be used as a Type 2 short term rental. C. A person who seeks to qualify for a Legacy Type 2 RA STR who submits a complete application, pursuant to the requirements of section 38.320.060.B.8, for a Type 2 short term rental prior to the effective date of this Ordinance is eligible to be considered a Legacy Type 2 RA STR if the permit is approved, notwithstanding that the permit may be issued no longer than 180 days after the effective date of this Ordinance to allow completion of final issuance of the state tax registration number, completion of safety inspections, and approval of a health department public accommodations. D. If the review authority determines a current Legacy Type 2 RA STR permit is forfeit for any reason including but not limited to a change in the status of the host, the property is no longer eligible to be used as a Type 2 short term rental and will forfeit its status as a Legacy Type 2 RA STR. E. If the review authority revokes a Legacy Type 2 RA STR permit pursuant to 38.260.060.B.11, the property is no longer eligible to be used as a Type 2 short term rental and will no longer be considered a Legacy Type 2 RA STR. F. Legacy Type 2 short term rental hosts are subject to all violation and enforcement provisions in 38.260.060.B.11, BMC. G. Conversion of a Type 2 short term rental. A Type 2 short term rental may convert to a Type 1 short term rental authorized by and in compliance with section 38.260.060.B, BMC. If a Legacy Type 2 converts to another type of short term rental it may not revert to a Legacy Type 2. H. Unlawful Type 2 short term rentals must cease operation. Type 2 short term rentals operating unlawfully after February 1, 2026 are not eligible to receive an annual permit or continue operating a Type 2 short term rental and will not be eligible to operate a Legacy Type 2 RA STR. I. A person who is denied Legacy Type 2 RA STR status by the review authority must follow the procedures in 38.260.060.B.11.b prior to filing an appeal pursuant to 38.760.030. Section 2 Authority to Implement. The Bozeman City Attorney is hereby authorized to take any action necessary to conform the Bozeman Municipal Code to Section 1. The Director of Community Development may adopt rules or an administrative interpretation to implement the provisions of Section 1. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. This Ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this Ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a disposition list with all other ordinances of the City. Section 7 Effective Date. This Ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the _____ day of ________________, 20__. ____________________________________ JOEY MORRISON Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of ____________________, 20__. The effective date of this ordinance is __________, __, 20__. _________________________________ JOEY MORRISON Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney